The Breakdown The Stablecoin Yield Standoff
18 snips
Jan 21, 2026 Tensions rise in Washington as Coinbase withdraws support, sparking White House anger and exposing fractures in the crypto lobby. The battle over stablecoin yield emerges as a key battleground between banks and crypto, with banks warning of deposit flight while critics argue they're merely protecting profits. Bipartisan resistance grows, complicating the path forward for legislation. As industry voices weigh in on the potential consumer benefits, the outlook remains grim, suggesting that compromise may be the only way to move forward.
AI Snips
Chapters
Transcript
Episode notes
Coinbase Pulls Out At The Last Minute
- Coinbase withdrew support for the market structure bill the night before the markup, derailing the process.
- Nathaniel Whittemore notes the White House called Coinbase's move a "rug pull" and urged industry to regroup.
White House Seeks A Broad Industry Deal
- The White House signaled it could withdraw support if Coinbase didn't negotiate a yield deal that satisfied banks.
- Nathaniel Whittemore highlights the administration's view that the bill is "President Trump's bill," not a single company's.
DeFi Liability Is A Bipartisan Red Line
- Senate Judiciary leaders from both parties pushed back on DeFi carve-outs, favoring AML rules across the stack.
- Whittemore warns such language would effectively kill hosted-wallet and frontend exceptions and imperil DeFi.